In today’s hyper-competitive market, customer loyalty programs have become a must-have for businesses aiming to build lasting relationships and stand out from the crowd.
These programs do much more than reward repeat purchases—they create connections, boost satisfaction, and provide exclusive perks that keep customers coming back. But the benefits go beyond just customer retention.
Let’s break down why loyalty programs are so powerful:
1. Increased Revenue and Retention: According to research conducted by Bain & Company, a 5% increase in customer retention can boost profits anywhere between 25% to 95%. Additionally, according to data from the National Retail Federation, 43% of customers spend more money at brands they’re loyal to, making retention more cost-effective than acquisition.
2. Stronger Relationships: Loyalty programs in India create a sense of community, encouraging deeper customer engagement. The Pareto Principle states that 80% of a brand’s profits come from 20% of its customers, while the remaining 80% are typically made up of one-time buyers. It is, therefore, imperative to cultivate strong brand loyalty among these 20% of customers.
3. Reduced Acquisition Costs: Focusing on customer loyalty lowers churn rates, minimising the need for expensive customer acquisition campaigns. According to a study by Bain & Company, a 2% increase in customer retention can lower advertising costs by as much as 10%. This is because loyal customers are more likely to make repeat purchases and recommend the brand to others, reducing the need for expensive ad campaigns to acquire new customers.
4. Valuable Data Insights: Loyalty programs provide insights into customer behaviour, enabling personalised marketing strategies.
5. Feedback Contribution: Loyal customers provide valuable insights that can help refine products and services, enhancing overall business performance.
Companies are recognising this fact and therefore, according to the Loyalty Programs Market Report, the loyalty market in India is expected to grow at a CAGR of 10.5% during 2024-2028 and reach US$8.02 billion by 2028.
Now, let’s dive into 15 of the most successful customer loyalty programs in India that are driving growth and keeping customers loyal!
This is the loyalty program of IndiGo, India’s leading low-cost airline, designed to reward frequent travellers with various travel-related benefits and enhance customer retention. The program operates on a points-based system, where customers earn rewards for purchases made through the IndiGo website, mobile app, and partner platforms.
To join, customers, both new and existing, need to be cardholders of the 6E Rewards program. Members earn points for every eligible purchase made, such as flight bookings, and other transactions related to travel. These points accumulate and can be redeemed for travel-related perks like travel vouchers, priority check-ins, complimentary meals, cashback, and milestone bonuses. The points system is designed to offer increasing value for more frequent flyers.
The 6E Rewards program has been highly successful in enhancing customer loyalty, leading to increased flight bookings and reinforcing IndiGo's dominant market share. By offering tangible travel benefits, it encourages customers to fly more often, strengthening long-term engagement with the airline.
This loyalty program, offered by Axis Bank, one of India's leading private sector banks, aims to reward customers for maintaining banking relationships, such as savings and current accounts, as well as for using debit and credit cards.
The Axis Bank Edge Rewards program operates on a points-based system, where customers earn points based on their banking activities, including account transactions and card usage. To participate, customers must hold an eligible savings or current account with Axis Bank, or possess an Axis Bank debit or credit card. The more transactions made; the more points customers accumulate. Enrollment is automatic once customers meet the criteria.
Points can be redeemed for a wide array of products and services, including electronics, home appliances, vouchers, and more. Customers can also choose to redeem points for exciting rewards from Axis Bank’s partner network.
The Axis Bank Edge Rewards program has successfully strengthened customer loyalty by incentivising frequent use of banking products, leading to increased transaction volumes and deeper customer engagement. It has contributed to enhanced retention and strengthened the bank’s relationship with its customers.
Marriott’s global loyalty program is designed to reward travellers for staying at a variety of hotels within the Marriott portfolio, including premium brands like The Ritz-Carlton, St. Regis, JW Marriott, Sheraton, and Westin Hotels.
Marriott Bonvoy operates on a points-based system, where members earn points for hotel stays, dining, and purchases made at participating locations. Anyone can join Marriott Bonvoy by signing up for the program. There are no fees to join, and members begin earning points immediately upon enrolment.
Points are accumulated and can be redeemed for free stays at Marriott hotels, room upgrades, discounted rates, free Wi-Fi, and additional perks such as late checkout, free breakfast, and lounge access, especially for members with elite status.
Marriott Bonvoy has significantly boosted customer retention and brand loyalty across Marriott properties. The program has seen impressive growth, with the number of members increasing by 18% in 2023. As of March 2024, Marriott Bonvoy had 6 million members in India and is targeting 10 million members, highlighting the program's success in strengthening customer engagement and driving bookings.
This is a loyalty initiative by Samsung designed to reward customers for their purchases and engagement with the brand. The program operates on a tiered rewards system, where customers earn points based on their spending earning a variety of benefits, thereby encouraging deeper brand loyalty and customer advocacy.
Customers are eligible to join the Samsung Smart Club program by registering or logging into the Samsung Shop App or website with their mobile number. Upon registration, new members receive welcome vouchers worth INR 5,000. They earn points for every purchase made, with different point rates for each tier:
Samsung Smart Club Elite: Earn 2 points per INR 100 spent, plus benefits like event invitations and a 10% discount on parts at Samsung Service Outlets.
Samsung Smart Club Pro: Earn 1.5 points per INR 100 spent.
Samsung Smart Club Plus: Earn 1.25 points per INR 100 spent.
The Samsung Smart Club Program has successfully enhanced customer engagement and loyalty, driving increased brand advocacy. With its tiered benefits, the program motivates customers to spend more and interact with the brand, leading to a stronger and more loyal customer base.
This point-based rewards system is designed to recognise and reward Tata Power customers by helping them accumulate NeuCoins for their efforts in timely bill payments and energy conservation. Additional NeuCoins can be earned through shopping at Tata brands that are part of the ecosystem.
Enrolment is easy and open to all Tata Power customers. Customers who use Tata Power services and have registered with the Tata Neu platform are eligible to participate in the loyalty program. These NeuCoins can then be redeemed for a wide range of products available from the entire gamut of Tata brands.
Tata Power’s loyalty program has significantly improved customer retention by encouraging responsible energy usage and timely payments. It has also raised awareness about sustainable practices while promoting customer engagement with Tata’s diverse offerings. Additionally, Tata Power supports the CSR initiative “Club Enerji”, which focuses on promoting STEM education and energy conservation, further strengthening its commitment to sustainability and social impact.
This is a tiered loyalty initiative by Maruti Suzuki that rewards customer for their purchases, services, and referrals. The program is designed to encourage customer retention, offering attractive benefits for purchasing additional vehicles, availing services from authorised dealers, and referring new customers. These points help customers progress through the program's tiers, unlocking increasingly valuable benefits.
The program is available to all customers who avail of financing options through Maruti Suzuki Auto Finance. Customers who meet the criteria are automatically enrolled in the loyalty program upon purchasing a vehicle or availing services.
Points earned can be redeemed for a range of rewards, including lower interest rates on financing, exclusive offers on new car purchases, special invitations to events, and bonus points for future spending.
The Maruti Suzuki Auto Finance Loyalty Program has successfully increased customer retention, driving higher sales volumes for the brand. Offering personalised benefits and rewards has helped the company foster long-term loyalty and encourage customers to engage more deeply with the brand, ultimately boosting both customer satisfaction and sales growth.
This loyalty program by Myntra, India’s leading fashion and lifestyle e-commerce platform, is designed to reward frequent shoppers with a variety of benefits, encouraging engagement and boosting customer retention. It is a points-based loyalty program where members earn Insider Points through shopping, writing reviews, and participating in various promotional activities. Anyone who shops regularly on Myntra can join the Insider program by creating an account.
Insider Points can be redeemed for a range of rewards, including free delivery, early access to sales, and exclusive partner discounts on food, travel, and more. The program also provides access to additional perks as customers progress through different membership levels.
Myntra Insider has proven to be highly effective, with over 6.8 million members contributing more than 40% of the brand’s sales. The program has strengthened customer loyalty and significantly increased sales by offering valuable rewards and fostering long-term engagement with the brand.
This premium loyalty program offered by Shoppers Stop, one of India’s leading department store chains, is designed to reward loyal shoppers with exclusive benefits and personalised services, enhancing the overall shopping experience.
The Shoppers Stop First Citizen program is a paid loyalty program. Customers can become First Citizen members by paying a one-time membership fee. Once enrolled, they start earning points for purchases made at Shoppers Stop and partner brands. As members advance, they gain access to exclusive benefits such as free home delivery, early access to sales, and special discounts.
Points can be redeemed for shopping vouchers, exclusive discounts, and other services. Members also receive personalised styling services tailored to their preferences.
The Shoppers Stop First Citizen program has been a key driver of the brand’s success, contributing 78% of sales in FY24, with 65% coming from repeat customers and 13% from new members. The program’s combination of rewards and personalised services has significantly strengthened customer loyalty and boosted sales.
This customer loyalty program offered by Titan, one of India’s most trusted brands in watches, jewellery, and eyewear, is designed to reward loyal customers by offering versatile benefits across all Titan brands, including Tanishq, Fastrack, Titan Eye Plus, and more.
Encircle by Titan is a straightforward, points-based loyalty program where customers earn one reward point for every rupee spent, with no minimum threshold for redemption. The program is open to all Titan customers, and there is no specific sign-up process required. Every purchase made across Titan brands automatically earns points for the customer.
Points can be redeemed in several ways, including reducing the bill amount, receiving anniversary offers, gaining exclusive access to new product launches, and even receiving services like jewellery or eyewear clean-ups.
Encircle by Titan has significantly boosted customer engagement and loyalty by offering accessible rewards from the first purchase. This program has successfully enhanced customer satisfaction and encouraged repeat purchases, fostering long-term relationships with Titan’s diverse customer base.
This is a premium loyalty program offered by Paytm, one of India’s leading digital payment platforms. The program is designed to reward customers for their transactions and engagement across a wide range of Paytm services.
Paytm First is a subscription-based loyalty program where customers pay a nominal annual fee to gain access to a variety of benefits, including exclusive offers, cashback, and rewards across Paytm’s ecosystem.
Once enrolled, they earn points on various activities such as mobile recharges, shopping, bill payments, and more. Members can redeem their accumulated points for a variety of rewards such as cashback, discounts on Paytm services, exclusive movie ticket offers, and deals from partner brands. The rewards can be used across Paytm’s mobile wallet, shopping platform, and even for online bill payments.
Paytm First has been highly successful in increasing customer retention and engagement within the Paytm ecosystem. By offering valuable rewards and a wide range of redemption options, the program has encouraged more frequent use of Paytm’s services, boosting customer loyalty and driving higher transaction volumes.
This is a premium-tiered, points-based loyalty program offered by HDFC Bank for credit cardholders, catering to high-net-worth individuals. The program provides a wide range of rewards and exclusive privileges across travel, shopping, dining, and lifestyle experiences.
The program is available to customers who hold an HDFC Bank Diners Club credit card. There are different versions of the card, each offering varying levels of rewards and benefits.
Points earned can be redeemed for a wide range of rewards, including flight tickets, hotel bookings, shopping vouchers, and exclusive experiences. Members can also use their points for cashback, dining vouchers, or gifts from partner brands. The program offers high redemption flexibility, catering to a variety of lifestyle needs.
The HDFC Bank Diners Club Rewards program has contributed significantly to increasing cardholder engagement and customer retention. By offering premium rewards and exclusive benefits, the program has fostered brand loyalty and positioned HDFC Bank as a top choice for customers seeking luxurious lifestyle perks. It has also driven higher spending among cardholders, as they are incentivised to earn more points for premium rewards.
This customer loyalty program offered by Bata, one of India’s leading footwear retailers, is designed to reward loyal customers for shopping at Bata, offering them exclusive benefits, discounts, and rewards on their purchases.
Bata Club is a points-based loyalty program where customers earn points for every purchase made at Bata stores or on their online platform. Customers can enrol in the Bata Club loyalty program by signing up for a free membership through the Bata website or app. The program has a single-tier structure but offers increased benefits as customers continue to accumulate points.
Points earned can be redeemed for discounts on future purchases. Members can use their accumulated points to get a percentage off their bills or to receive exclusive vouchers for various Bata products. The points can also be used for special promotions and seasonal sales offers available to Bata Club members.
The Bata Club program has effectively increased customer engagement and loyalty, encouraging customers to make repeat purchases. By offering instant rewards and a simple points system, Bata has succeeded in retaining customers and boosting sales. The program has helped drive foot traffic to stores and increased overall sales, making it an essential part of Bata's retail strategy in India.
This points-based reward system offered by Café Coffee Day, one of India's most popular coffee chains, is designed to offer regular customers exclusive benefits, discounts, and free items to enhance their overall coffee experience.
The program is available to all Café Coffee Day customers who sign up for a Coffeeza loyalty account via the CCD app or website. Membership is free and automatic once customers register their details. Points are awarded for every purchase made, and customers can earn additional points during special promotions or for using the mobile app to order.
Coffeeza Points can be redeemed for free drinks, snacks, or discounts on future purchases at any Café Coffee Day outlet. For instance, a customer may redeem 100 points for a free coffee or 250 points for a free snack combo. There are also exclusive offers, like birthday rewards and special discounts during festivals. Customers can track and redeem their points easily through the app.
The CCD Coffeeza Loyalty Program has significantly enhanced customer retention by offering a simple and rewarding experience. It has encouraged repeat visits to Café Coffee Day outlets and promoted higher spending. This program has strengthened CCD’s position in the highly competitive coffee shop market by fostering brand loyalty and encouraging customers to choose CCD over other coffee chains. The app-based structure also enables Café Coffee Day to gather valuable customer data, further personalising the loyalty experience and improving service.
This is a loyalty program introduced by Spencer's, one of India's leading retail chains specialising in groceries, apparel, and home products. The program aims to offer customers exclusive discounts, personalised rewards, and special offers to increase customer loyalty and repeat shopping.
Spencer's Rewards is a points-based loyalty program, which allows customers to earn points on every purchase made at Spencer's outlets or through their online store. For every ₹100 spent, customers earn a fixed number of points. The program also offers bonus points during special promotional periods or for purchasing specific products.
To join the Spencer's Rewards program, customers must register for a free membership either by signing up at Spencer’s stores or through the Spencer’s website and app. All customers are eligible, and there are no minimum spending requirements for enrolment.
Points can be redeemed for discounts on future purchases at Spencer's stores or online. For example, 100 points can be redeemed for ₹10 off the total bill. Members also receive exclusive offers such as personalised discounts, early access to sales, and special holiday promotions. Additionally, they can use accumulated points for vouchers on select products or categories.
The Spencer's Rewards program has been highly effective in building customer loyalty and driving sales. By offering easy-to-understand rewards and encouraging frequent shopping, the program has helped Spencer's increase customer engagement and boost repeat purchases. The ability to redeem points both in-store and online makes it convenient for customers, enhancing their shopping experience. This loyalty initiative has contributed to Spencer's growth, particularly in retaining customers in a competitive retail market.
This is a rewards initiative introduced by Croma, a leading electronics and consumer goods retailer in India. The program is designed to offer customers exclusive benefits, discounts, and rewards for their purchases, making it a key element in Croma’s strategy to foster customer loyalty and drive repeat business.
The Croma Privileges program is a tiered loyalty program based on points accumulated from purchases made in-store or online at Croma. With every purchase, 1 point is awarded for every ₹100 spent. Points can also be earned through special promotions, festive offers, and buying select high-value products. Membership is available to anyone who makes a purchase, with the points being credited to their account upon registration.
Points can be redeemed for discounts on future purchases or exchanged for special rewards, such as gift vouchers, extended warranties, free delivery services, and exclusive member-only deals. For instance, 100 points might offer a ₹100 discount on a purchase. The points can be used for a variety of categories, including electronics, home appliances, and accessories.
The Croma Privileges program has had a significant positive impact on customer loyalty and sales. By offering a seamless and rewarding experience, the program has encouraged customers to return to Croma for future purchases, contributing to increased foot traffic both online and in-store. The tiered structure ensures that high-spending customers receive exclusive perks, enhancing their overall experience and strengthening Croma’s position as a top choice for consumer electronics in India.
Conclusion:
In conclusion, customer loyalty programs in India have become indispensable assets for businesses navigating today's competitive landscape. By fostering long-term relationships through tailored incentives, besides encouraging repeat purchases, these programs also significantly enhance customer satisfaction. The benefits—ranging from increased revenue and customer retention to reduced acquisition costs—demonstrate the strategic importance of prioritising loyalty.
Successful examples from various sectors in India, such as IndiGo's 6E Rewards and Marriott Bonvoy, highlight the tangible impact of these initiatives on customer engagement and business growth. As companies continue to refine their loyalty strategies, leveraging valuable customer insights and feedback will be critical in driving sustained success. Ultimately, a well-structured India loyalty program not only enhances brand loyalty but also positions businesses for resilience and growth in an ever-evolving market.
To learn more about the various customer loyalty programs and products in India, click here.